Among 44 recommendations affecting the entire financial system, the final report – released yesterday – recommended the government act to “raise the competency of financial advice providers” in order to restore consumer confidence.
The report recommends that advisers providing advice to consumers on Tier 1 products should be required to have a relevant tertiary degree as well as demonstrable “competence in specialised areas, such as superannuation” and additional ongoing CDP.
“The benefits of improving the quality of advice are significant,” the report states.
“To achieve this, the Inquiry believes that minimum competency standards should be increased and the current government process to review these standards should be prioritised.”
The FPA issued a statement welcoming the release of the FSI report, and its stance on adviser education in particular.
“The FPA continues to lead the industry when it comes to higher education standards including approved degree requirements,” said the FPA’s Dante De Gori.
“In line with our position, the FSI does not support a National Competency Exam.”
